Margining On Derivatives: the preferred approach is:


•All standardised OTC derivatives should be traded on exchanges or electronic platforms, where appropriate.

•All standardised OTC derivatives should be cleared through central counterparties (CCPs).

•OTC derivatives contracts should be reported to trade repositories.

•Non-centrally cleared derivatives contracts should be subject to higher capital requirements.


AND Appropriate margining practices should be in place with respect to all derivatives transactions that are not cleared by CCPs.

Margin requirements (Initial & Variation) should be phased in over an appropriate period of time to ensure that the transition costs associated with the new framework can be appropriately managed.